Why Canada Should Consider Hanwha Ocean’s KSS-III to Surface from Victoria-Class Past

Already in production, the KSS-III offers a swift, state-of-the-art solution for Canada’s submarine needs

BY JAMES CARELESS

Even by today’s procurement cost standards, DND’s Canadian Patrol Submarine Project (CPSP) procurement is substantial. Ottawa is willing to spend billions of dollars to acquire, operate and maintain up to 12 new submarines to replace the Royal Canadian Navy’s aging Victoria-class submarines. And although the federal government will be spending an estimated $1 billion or more to maintain the RCN’s current submarines over the coming decade, these vessels are still scheduled for retirement in the mid-to-late 2030s. As a result, a confirmed replacement is needed urgently.

            With tens of billions on the table, international submarine builders are understandably interested in winning the CPSP contract. One of them is the Republic of Korea’s Hanwha Ocean. Located near the Port of Busan, Hanwha Ocean has delivered two KSS-III submarines now in active service with the Republic of Korea Navy and is constructing three more. For Canada, the company is offering this proven platform, designated as the KSS-III CPS (Canadian Patrol Submarine) — a platform that is already in active production and in service with the Republic of Korea Navy (ROKN).

“The KSS-III CPS is South Korea’s latest evolution in conventional submarine technology — indigenously designed and constructed through decades of spiral development of a modern, conventional, ocean-going submarine,” said VAdm (Ret’d) Steve Jeong, Hanwha Ocean’s Senior Executive Vice-President and Head of Naval Ship International Business. “Over the last four decades, Hanwha Ocean has continued to evolve a proven military-off-the-shelf (MOTS) submarine design culminating with the latest batch of the KSS submarine fleet.”

Here’s the most important part: “The KSS-III CPS is a proven, in-service, in-production model that offers the fastest delivery schedule and meets all the Royal Canadian Navy’s operational requirements for the Canadian Patrol Submarine Project,” VAdm (Ret’d) Jeong told CDR. “Hanwha Ocean can deliver the first KSS-III CPS in just six years, followed by additional units at a pace of one per year. Assuming a contract award in 2026, the first four submarines can be delivered by 2035, the first delivered in 2032, to fully replace Canada’s current Victoria-class submarine fleet. Earlier retirement of this fleet will result in estimated savings of approximately $1 billion on maintenance costs. The additional eight submarines will be delivered at a rate of one per year, meaning the entire fleet of 12 can be delivered to Canada by 2043.”

Better yet, the KSS-III CPS proposal submitted by Hanwha Ocean to Ottawa included a training plan that would see Canadians receive operational and maintenance training in Korea while the first submarines are being constructed. This approach would allow an RCN crew to sail the boat upon delivery and be ready to conduct operations almost immediately. When it comes to replacing the Victoria-class submarines in an efficient manner, Hanwha Ocean has done its homework.

SPECIFICATIONS FOR THE KSS-III CPS

The KSS-III is a diesel-electric submarine that is capable of firing torpedoes and submarine-launched cruise missiles (SLCMs). Each submarine has a surface speed of about 12 knots, a submerged speed in excess of 20 knots, and a cruising range of more than 7,000-plus nautical miles. Three KSS-IIIs have already entered service with the ROKN, with three more scheduled for construction. The KSS-III is approximately 90 meters long, displacing around 3,600 tonnes.

Unlike older diesel-electric submarines that use lead-acid batteries, the KSS-III draws electric power from longer-lasting, lower-maintenance lithium-ion batteries. These batteries can be recharged using an Air Independent Propulsion (AIP) system. The AIP uses fuel cells rather than diesel generators for recharging, allowing the KSS-III to stay submerged for more than 21 days before needing to surface or, if necessary, use an above-water snorkel to recharge its batteries. This is a big advantage for missions under the Arctic ice-edge.

            “The KSS-III CPS offers the longest submerged endurance among all conventional submarines in service,” said VAdm (Ret’d) Jeong. “As such, this platform is fully optimized for Anti-Submarine Warfare, Anti-Surface Warfare, Intelligence, Surveillance and Reconnaissance (ISR), Minelaying, and Special Operations Forces (SOF) support.”

MANY ADVANTAGES

            The KSS-III CPS offers Canada a MOTS submarine option that provides significant operational sovereignty, which is a significant advantage. The Republic of Korea can also sell missiles and torpedoes to the RCN, bypassing the need to rely on foreign suppliers.

 “Canada will have full operational sovereignty over its submarine operations and all associated controls”, VAdm (Ret’d) Jeong confirmed. “This eliminates the operational limitations, approval delays for deployment, training, sustainment, and upgrades, and integration hurdles that may be commonly associated with regulated systems. This independence is important for a country like Canada, which requires the flexibility to work with a wide range of allies and maintain full control over its defence posture by sustaining its platforms independently.”

At the same time, the KSS-III CPS requires fewer crew members than older submarines do. This could be good news for the RCN, given its current recruitment and retention issues. “Each of the KSS-IIIs incorporates a high degree of automation and can operate with a standard crew size of 33 sailors — although there is room to embark as many as 50 crew members,” said VAdm (Ret’d) Jeong. There are also three decks on each KSS-III CPS, which Hanwha Ocean officials emphasize would allow for greater habitability and mixed gender crews.

Finally, “the KSS-III CPS is not an export-only model — it is the same class of submarine actively operated by the Republic of Korea Navy in real-world conditions,” explained VAdm (Ret’d) Jeong. “This ensures Canada will benefit from a proven platform, backed by an established supply chain and validated operational and maintenance data throughout the 30+ years of in-service support (ISS). The KSS-III is the backbone of the ROKN submarine force. Acquisition of the KSS-III would allow Canada to be a member of the international KSS-III User Group, which consists of a growing number of nations.”

WHO IS HANWHA OCEAN?

Given a price tag in the tens of billions, it makes sense to ask potential contractors for their resumes. Here’s the background on the company behind the KSS-III CPS.

Founded in 1973, Hanwha Ocean is one of the world’s most respected shipyards. With more than 21,000 employees on staff, this company specializes in the design and construction of various naval and commercial vessels. These include submarines, destroyers, frigates, auxiliary vessels, container ships, and tankers as well as offshore platforms, drilling rigs, Floating Production Storage and Offloading (FPSO) units, and Floating Production Units (FPUs).

For more than 40 years, Hanwha Ocean has been building and servicing submarines for the Republic of Korea Navy and other navies. Since 1973, the company has built more than 1,400 vessels, including 114 naval vessels. The company designed and delivered the first KSS-III to the ROKN in 2021, and the second in 2023. In 2023 alone, Hanwha Ocean constructed 41 naval and commercial vessels.

Hanwha Ocean’s parent company, Hanwha Corporation, has more than 100,000 employees and 91 subsidiaries globally, and describes itself as the Republic of Korea’s leading defence company. As part of the company’s plan to expand into North America, including the recent acquisition of Philly Shipyard in Pennsylvania, Hanwha is committed to establishing a robust and long-term presence in Canada that will create jobs, boost economic growth, and accelerate the country’s defence capabilities.

SUITED TO CANADA’S THREE
OCEAN DEFENCE STRATEGY

            In June 2024, the Canadian government issued “Our North, Strong and Free: A Renewed Vision for Canada’s Defence”. This update to its 2017 “Strong, Secure, Engaged” defence policy made clear that “Defending the Arctic is asserting Canadian sovereignty. To do so, we must take a new approach that improves and modernizes our defences in the region.”

            At the same time, Canada has Atlantic and Pacific coastlines to protect as well. This is why “Through the Canadian Patrol Submarine Project (CPSP), Canada will acquire a larger, modernized submarine fleet to enable the Royal Canadian Navy to covertly detect and deter maritime threats, control our maritime approaches, project power and striking capability further from our shores, and project a persistent deterrent on all three coasts,” said the October 7, 2024 DND statement that announced the CPSP.

            Collectively, these reasons underscore the KSS-III CPS’s suitability for the CPSP procurement. “The KSS-III was designed for long-range, high-endurance patrols, and is uniquely suited to meet Canada’s demanding operational requirements, including those in the Arctic, as Canada possesses the world’s largest coastline,” VAdm (Ret’d) Jeong said. “The combination of its AIP system and lithium-ion batteries allows for extended submerged operations exceeding three weeks, while its 7,000-plus nautical mile range enables transoceanic missions without surfacing. Furthermore, this platform is engineered for sustained operations in cold and contested environments, with modular adaptability for payloads, sensors, and mission systems tailored to Canadian needs. Its stealth characteristics, advanced sonar systems, and pressure hull design support under-ice operations, making it an ideal platform for Canada’s strategic geography.”

FAST DELIVERY IS A BIG SELLING POINT

            Canadian defence procurement is legendary for its glacial-like speed. This is why Prime Minister Mark Carney has vowed to speed up the process, at a time when Canada has committed to reaching its 2% GDP NATO spending target by the end of the current fiscal year in 2026.

            If there was a time for a defence contractor to offer speedy delivery to Canada, this is it. Fortunately for Hanwha Ocean, the company’s construction of KSS-IIIs for the ROKN and active production line, which is currently being expanded to be able to build five submarines simultaneously, means that it has what’s needed to begin building KSS-III CPS submarines.

Given how many issues are likely to arise as Canada ramps up its defence spending, there is much to be said for a CPSP bidder who is already in position at the starting gate, eager and ready to go. The fact that the KSS-III is also a known commodity is another checkmark in Hanwha Ocean’s column. It removes the element of testing (and doubt) associated with clean sheet projects, making it possible for the RCN to replace the trouble-plagued Victoria-class submarines much sooner.

CANADIAN PARTNERS

            Although the KSS-III CPS is a Hanwha Ocean submarine, the company has lined up a deep Canadian bench of talent for technology solutions, training, infrastructure and in-service support throughout the entire life-cycle of the program. They’ve signed a Technical Cooperation Agreement with Babcock Canada for submarine sustainment, a MOU with BlackBerry for their secure communications product portfolio and embedded software solutions, and a MOU with L3Harris for a range of maritime capabilities. Hanwha Ocean has also teamed with CAE for training solutions, Gastops for their propulsion systems machinery control, modelling and simulation technology, and Curtis-Wright Indal Technologies for their towed array handling and winch systems. As well, the company has signed MOUs with Modest Tree related to their immersive training and digital in-service support solutions, the Des Nedhe Group for their economic sustainability products, and J Squared Technologies’ critical capabilities for sea platforms. Finally, Hanwha Ocean has awarded a multi-million-dollar contract to Toronto-based Hepburn Engineering for its Replenishment-at-Sea (RAS) system as part of the Republic of Korea Navy AOE-II Project.

“Training would be comprehensive and fully Canadianized,” noted VAdm (Ret’d) Jeong. “We also plan to establish a domestic Through-Life Support (TLS) Centre in Canada, creating hundreds of high-value, skilled jobs and enhancing the Royal Canadian Navy’s sovereign submarine sustainment capabilities. This facility will provide comprehensive training, maintenance, modernization, and operational readiness for the entire fleet, spanning over 30 to 40 years. The ISS centre will be staffed by Canadians and integrated with Hanwha’s Canadian industry partners.”

The bottom line: “Hanwha’s KSS-III for Canada is a ready, proven solution that aligns with every pillar of Canada’s defence policy, outlined by capability, timely delivery, sovereignty, and economic return,” VAdm (Ret’d) Jeong concluded. “Hanwha Ocean is prepared to be a long-term strategic partner in strengthening the Royal Canadian Navy, by providing it with the only submarine platform that delivers on every core requirement specified by the Canadian government. We are ready to help, and we are ready to get started.”

James Careless is CDR’s Ottawa Bureau Chief